|Aastrom Biosciences' Fueled Uptrend|
|By Edward Stevenson|
|Wednesday, 29 December 2010 07:44|
A bullish crossover of the MACD indicator suggests the beginning of a new uptrend for Aastrom Biosciences (Nasdaq:ASTM). On Tuesday volume jumped to nearly three times the 3-month average without any news from the company. Volume, often interpreted as the lifeblood of a chart, measures strength behind price movement in technical analysis. With the price breaking above its 50 day moving average line (blue), Tuesday's share volume confirms the 'technical breakout' - a move through or above a significant level of resistance.
More specifically, Tuesday's session lent way for shares to climb above not one, but two levels of notable resistance. The primary breakout occurred once the price broke channel resistance (pink). We made a note of that in real-time here. As mentioned, a break above the 50MA followed suit (the secondary breakout). Additionally the RSI indicator turned upwards and broke above the 50 mark, another indication of strength behind the price rally.
Read the full technical analysis at Seeking Alpha: http://bit.ly/dYYYho
Disclosure: Long ASTM